hello, a very warm welcome. >> these are your headlines from around the world. >> a breather from greece. european equities bounce into the green with bond yields edging lower. this despite athens defaulting with the imf. >> another meeting this afternoon. this amid reports the finance minister hinted the referendum could be cancelled if a deal is reached. >> flying high shares in airbus

rally after they sign a landmark deal worth $18 billion. >> airline stocks take flight across europe. it's the airport of choice by a government appointed panel. >> hi everyone. let's take a look at euro zone manufacturing data. so far it doesn't seem like it impacted activity. coming in at 52.5 and also higher than the reading we got in the month of may. this is despite the cloud of the greek debt crisis hanging over the region. we haven't seen major movement in the euro. a lot have to do with keeping an eye on international creditors. carolyn, i found the data out of

spain interesting because manufacturing pmi falling yet it's employment index rising to its fastest growth in 8 years. >> france was also a bright spot. for the first time they're back in growth territory when it comes to manufacturing since april 2014. so those manufacturers finally emerging. the german manufacturing pmi gaining traction in june. italy also worth pointing out. manufacturing also slightly weaker in july. by and large not a huge impact from greece. >> i'm surprised you didn't mention switzerland. pmi rising in june despite the swiss franc. >> but for the first time that's back to just about 51. >> let's put the focus on greece. euro zone finance ministers are due to hold a call on athens.

it came too late to prevent greece from defaulting on its loan with the imf. the finance minister hinted to his counter parts that the government could scratch sunday's referendum if a deal is reached. thousands have rallied in favor of staying in the euro zone but the vote is still too close to call. julia is on the ground with us to give a look at how the situation sun folding. >> thank you so much. finance ministers are going to have another conference call today but there's going to be many finance ministers thinking why should we give them the opportunity to negotiate a deal when right now they're talking to the people here and saying you need to vote no. it's not worth the effort. so unless we see a strategic u-turn from alexis tsipras coming with a deal and then

voting himself, i'm not sure how it's going to work. angela merkel said we're not going to agree anything until that referendum foezgoes ahead. more people coming into the square this time for the yes vote. that didn't deter people. i didn't have trouble trying to determine how many more people were there the night before. i have it on good authority last night one in terms of numbers but we had a poll out this morning. a pro-government party saying the no vote is winning. but now we have capital controls in this country and the financial crisis impact of those controls very much being felt by the people and that's seemingly even on that poll pushing impact and reducing that no vote support. still too close to call. that's the message we're hearing from other mp's as well. on that note we'll be speaking to a new democracy mp.

we'll get his view. how concerned he is about the risk of a no vote here and the impact that the capital controls still have on people. there's a lot of fears here that they'll run out of money by the end of the week and the papers here talking about the prospect of deposit hair cut. one of the fears that the government accuses the on situation of fear mongering so there's a lot of noise surrounding a future deal but also here the impact very much being felt. back to you. >> julia i'm a little confused and i'm really not the only one but if we do see that referendum happening on sunday what will that be on? the june 25th deal on the table? or will that be on likely esm deal? what will it be? >> i'm not sure there's time to change the question now so we're still stuck with a referendum that is on the proposals back on the 25th of june which quite

frankly now are part of a deal being negotiated but i know you and i were talking about this on twitter last night in particular too. i think what we have to remember is those proposals formed the backbone of any future deal. a third bailout deal anyway. so if they want to argue it they can say these conditions are going to be part of any future deal we sign anyway and of course that's now what is being negotiated already. yes there needs to be more financing and yes, ultimately the greeks are still pushing for a debt write down and this is also going to come down to the crux of any bailout negotiations. still they're asking for more than the europeans are concerned with. but there's a lot of confusion here still what discretion is going to be and whether people ultimately understand it carolyn, that's not gone away. >> thank you so much for that. meantime, we have some flashes coming from s&p. it says the euro zone economy is

at a tipping point. 1.6% gdp growth in the euro zone this year and 1.9% in 2016. that's actually a slight upward revision versus 1.5% and 1.7% previously projected in the month of marchand that is on the back of stronger consumer demand. we continue to assume that the current recovery is likely to gain momentum in the coming two years. i haven't obviously read the full report but based on the one or two headlines they're not too worried about greece but s&p ratings downgraded greece once again. that was yesterday and now a 50% chance of greece defaulting. >> that's a more general release though. not specifically related to greece. let's get the focus back to greece. we're joined by the co-founder and chief economist. good morning. great to have you here as always. a note you published on sunday or monday said the astonishing weekend events in greece will

almost certainly prove bullish for risk assets around the world, especially in europe. is that still your view? >> yes it is. because it has brought forward the only plausible solution that there's been for the greek crisis for at least the last couple of months really since it became clear that the government was not either able or willing or both to do the kind of deal with europe that europe could possibly accept. since that became clear the only plausible solution was a regime change essentially. a change of government in athens and i think this referendum makes it inevitable. i literally mean inevitable. it makes it very likely by next week if tsipras loses the referendum and the vote goes yes. but even if the vote goes no i don't see how he can stay in power for more than a few weeks

because the chaos unleashed in greece will make the current situation look like switzerland on a good day. he's not going to be in power in a months time. >> how do you rate how he's played things? it sounds like you're saying this is bad for his political future but good for greece's future. >> he made one mistake by the other. the mistakes were made by his finance minister that had the game theory idea that if he pushed the other side to the brink they would surrender first which was never at all plausible because the cards that greek had were very weak and everybody understood that. they refused to make the really quite moderate symbolic political concessions that were needed to get this extension of the deal settled by the end of june and after that it was always clear that the europeans would abrie to debt relief. really very substantial debt

relief but first they have to have the small symbolism that greece was willing to baby the rules and when it became clear that the current government wouldn't do that i think really the only solution did become and is now a change of government in greece. >> the amount of attention the ecb and euro zone leaders have had to allocate toward greece's impact will be on europe's recovery? will the ecb have to increase the quantitative easing program to deal with the interruption that the greek crisis has caused? >> they would be willing to do that if they need to. that's another of the miscalculations that tsipras made. they assumed that europe was still in the same situation today as woman standing years ago where they couldn't afford to let greece go because of the contagion effect but the thing that happened before the election in january was the announcement of this enormous

program of quantitative easing by the ecb which means they can stand there and buy all the bonds it wants in italy, spain and portugal and there's nobody that's big enough to fight the ecb in the markets. they'll be willing to do it. doesn't look like they'll have to do it. because they're there to prevent the break up of the euro and probably the markets won't actually shut but if they do they will increase the program. >> are you surprised that s&p just upgraded the forecast for the euro zone economy? regardless of how this ends in regards to greece wouldn't you think it would leave some negative impact for the euro zone economy? >> well it is having a negative impact. certainly in the very short-term and not just in greece but in euro trading companies dealing with kbrees and so on and already having negative impact

even in italy and spain. look what happened to the stock markets. they have fallen by 4 or 5% but the other thing that's happened really which is perhaps unexpected euro since january is that the euro zone economy outside of greece has been slowly or steadily shown signs of recovery as you said yourself and the pmi reports. all of that of course was going on before greece. greece will slightly dampen that recovery but i think the combination of a natural cyclical recovery with the extremely powerful methods of the ecb is now deploying makes it quite seasonal to upgrade europe. not hugely but modestly along the lines of the figures you mentioned. >> you're going to stick around with one more chat. the co-founder and chief economist. >> let's bring you flashes coming out of commerzbank. they're selling two real estate

loan portfolios. they are going to the likes of jp morgan and lone star. let's have a little bit more. they expect charges of $65 million in q-2 and $20 million in q-3 due to sales. so slightly low but overall the value of 2.2 billion coming from the sales of these portfolios. >> quick look at the european markets. we're one hour and 10 minutes. the stoxx 600 is seeing buyers around 2-thirds of 1%. really sizable losses on monday and tuesday and actually for the month of june european markets lost 4%. that's the biggest monthly decline in about two years. so i've got to thank greece for that but there is some optimism this morning that the worst regarding greece can be avoided. let's have a look at the european markets one by one. the xetra dax higher.

similar percentage gains for the ftse 100 and italy is higher by 0.7%. in the bond markets we're seeing less buying obviously of some of the safe havens because risk appetite is returning and we're seeing a tiny bit of buying of german paper with the yield at 76 basis points but no buying of the ten year u.s. paper with the field at 2.36% and yields had already risen yesterday on optimism that maybe a greek deal could be struck. the italian yield sitting at 2.28%. but keep in mind for the second quarter, u.s. treasuries lost 1.5%. that was the worst quarter for treasuries since the final quarter of 2010. let's have a quick look at the currency markets and i want to show the euro dollar pair. we're down by a quarter of 1% at 11109. not too much optimism reflected in the euro-dollar pair but this has been quite erratic over the

last couple of trading days. the yen is lower and not really reacting to the corporate business survey and the aussie dollar with a pop on the back of the chinese pmi. >> coming up will machines win? and what is the future of digital news? just some of the questions posed to mark zuckerberg. stay tuned to find out how he answered the questions. plus raising the bar. can they improve investors spirits? plus as president obama prepares to lay the foundations for a historic deal with cuba we'll tell you what exactly to expect. worldwide exchange. we're back in two minutes.

>> the reading was slightly stronger than may's. the official pmi remained unchanged. better news in the services sector which showed signs of a growth. let's check in on markets in asia. sri, earlier on today i thought we saw some steadiness in the chinese session but take a look

at the screen again. we're down another 5%. >> that's right carolyn. i think the psychological damage of the past couple of weeks where we saw a 20% correction has really taking it's toll on market confidence on the retail investor base as well. so they are very jittery. they're very gun shy. yes we saw a rebound yesterday in tuesday's session but that really unwound today. i think investors are taking this as an opportunity to deleverage in the stock market. so this is where we stand at the settlement down by more than 5% despite the best efforts of beijing and the regulators to calm the market. i think this volatility is the new normal and i think we can safely say as well the bull market in china is structurally compromised. having said that though if you look at the market performance over the course of the first half it was the best performing

asset class globally although let's not underestimate the data over the past month. it was quite constructive in terms of business confidence but also this is important, 5.3% expansion expected in the next fiscal year up to april. so that's good news because capital spending that you and i know unleashes that cycle that should help us get back to 2% inflation which is the boj's target. the composite, we have an upgrade to malaysia's credit outlook to stable. some economists thought this was not warranted given the fact that we have seen a rather nasty debt scandal at the malaysian state investor 1mdb to the quantity of 11.4 u.s. dollars. >> we have seen extraordinary

moves in the china a share market. let's try to step away from that for a moment. in terms of the fundamental economy are you bullish or bearish? >> i'm not that far off the consensus. i think the economy is definitely getting weaker it's probably stabilizing now. euro even as recently as a year or so ago, 7.5 or 8% and the risks are very much on the down side purely looking at the economic momentum as it is today. on the other hand the policy response is becoming more and more powerful. i think the chinese authorities left a little too late to respond. there's still some against the degree of monetary stimulus

that's required. china will be surprising on the upside. >> i disagree with a key point that you say the policy response is becoming more powerful because the lending data despite significant rate cuts have been incredibly poor. we're at a stage where they are trying to ease but it's having no effect at all. >> i don't think we disagree. the outcome of the policy -- the lending data is always a result of the policy a few months at least earlier so the fact that lending data is slowing and isn't showing any sign of pick up that's the indication that they didn't move fast enough in easing interest rates. china has by far the highest interest rates in the world among the large, euro and fairly successful economies. there is still a lot more scope for policies in both rate cuts and reductions in the bank

reserve requirements and the pboc should have done this earlier and there was a fair amount of tension which the stock markets are now reflecting between the central bank people that are still cautious and hawkish and the government people who ultimately are in charge of china who i think are pushing for a stronger policy response. >> great stuff. we have to leave it there for today. thank you very much as ever. co-founder and chief economist. >> the airport's commission has announced its backing the expansion of heathrow airport but it remained unclear whether they'll act on the commission's recommendations. >> some stocks taking flight easy jet, ryan air and aig leading the sector higher. in fact the ceo urged speed of action on the new proposal saying the company would open a base at heathrow if the run way was built. the airliners flying high but we

should point out this stirred a lot of political attention. the expansion of heathrow. >> the statement from the iag chief executive. he says despite the diligent work and compromises he made in an effort to appease some politicians the real test is whether any political will exists to turn his recommendation into reality. without political leadership it will end up on the shelf gathering dust like it's predecessors and mr. cameron was against it in 2010. i wonder if he'll change his mind this time around. >> no ifs, no butts, there will be no expansion in 2009 ahead of the 2010 election. crucial number of seats he needed to win. of course he dragged his heels through the last parliament and got reelected and many saying he will go with whatever the report suggests which will be embarrassing for him politically.

johnson has been incredibly clear on his point of view that there shouldn't be an expansion and this is going to be one of the key issues for the current government in terms of splits and divides. i just hope they make it quickly and go on with it because this is always going to take it we have to get on with it to make sure that london does remain one of the key hubs. >> in order to remain economically competitive, this expansion is crucial. >> the airport's commission saying that 147 billion pounds could be added in economic growth once it's finished of course and some 70,000 jobs could be created by 2050. >> absolutely. it's going to be politically toxi. the government got the report themselves yesterday. let's look at some of the other top stocks on the move today in europe. shares in the security firm soaring after they're on track for full year profit.

up 10.4%. this is a marked improvement from last year's giant 1.3 billion pound loss. adidas up 1.2%. the analyst team said it's not too late to compete with the likes of nike highlighting the strong focus on the consumer. tullow oil up itself. it raised the west african full year production guidance. and finally airbus up 2.3%. shares taking off after china submitted a multibillion dollar order for up to 75 wide body jets. >> still to come on the show with the polls too close to call we speak to one greek mp convinced that people will vote yes to the euro. find out why after this short break.

>> european equities bounce into the green despite athens defaulting on its loan from the imf. >> everybody remains on the negotiating table with euro zone finance ministers set to hold another meeting in the afternoon. they have shinted the referendum

could be cancelled if a deal is reached. >> flying high shares rally after china signs a landmark deal with the french aerospace giant eventually worth $18 billion. >> airline stocks take flight as heathrow is picked as the airport of choice for a new run runway by a government apointed panel. >> mr. osborne if you're watching u.k. june manufacturing pmi falls to the lowest level since april 2013. 51.4 the figure versus 51.9 in may. so slowing unexpectedly in the face of a stronger pound and weaker performance over the last couple of months perhaps from europe as well. worth noting as we know manufacturing pmi in u.k. not quite as important as services

pmi so this is a slight blow but the data not terrible. in may sterling continues to rally as it has been over weeks and months. it's flat in today's trade. >> european markets. let's take a look at how equities are trading today. a mixed day of trade over the past coup of days giving the fast moving developments when it comes to greece's debt situation and that referendum coming up on june 25th. a yes vote or no vote. the italian markets holding on to gains of three quarters of a percent. the spanish market also in the green up about .4%. let's take a look at the euro stoxx 50. it has been strong against a basket of currencies despite the uncertainty around greece. we're looking at it up about about .3%. the euro trading at around 111 against the u.s. dollar despite

mixed euro zone pmi data. >> let's have a look at bonds. you can see the yield on the german at 0.76. the ten year note in the u. s. 10.36. bond market seeing peripheral yields moving slightly lower today because there's a little more positivity but no major, major moves in the bond market. let's look to sum up what seema was just saying because the euro moves haven't been clearly correlated with the quality of news coming out of the greek situation. in fact it's more the way that that quality of news moved the bond market that then lead to the euro moving in the opposite direction. it's between the spread with the euro zone and u.s. yields and that's seen it move in slightly confusing directions. today it's 111 almost exactly. >> a lot of people have given up trying to forecast what the euro dollar is going to do these days. it's so erratic. >> it moves in the direction of what you'd think until we hit

complete disaster. people still having a little bit of complacency. >> still for this year it's been long the u.s. dollar and short the euro. so perhaps a brief period of strengthening that we have been seeing in the euro despite the lingering fears around greece but most strategists we speak to are long dollar because they're putting their money on the u.s. economy recovering and we'll get an indication of the jobs report. >> there's people recovering positions and stuff like that. makes it hard to predict what's moving it. >> let's get back to greece. euro zone finance ministers are due to hold a call on athens. the last minute bid for an extension of the bailout program came too late to prevent greece from defaulting on its loan with the imf. meanwhile, pmi data for the month of june released in the last hour shows the greek manufacturing sector has fallen

deeper into contraction territory. >> now how are investors reacting to the greek crisis? nancy is standing by in monaco with a prominent player in the greek market. nancy, over to you. >> thanks seema. that's right. we have been talking to several high level investors here that seem to be shrugging off concerns over greece but that's primarily because they're not directly exposed but that's not the case for my next guest. steve jacob joins us now. thank you for being here. first, can you give us a better idea of what your exposure to greece is at the moment? >> we have been trading and investing in greece since 2010. the psi, the sovereigns the greek banks. we still have exposure. we're still constructive on greece. i think the referendum is going to be a key turning point on sunday and our base case same base case as we had a week ago

when there was a euphoria over an imminent deal and raising rising greek asset levels is still the likelihood of 10%. >> what if the worst case scenario happens with the referendum, what does that mean for you in terms of actual lost losses on your investment? >> we naturally trimmed the position overtime in the last three or four or five months and also against recently into the rally last week. we're in a position where we're comfortable with the size we have. i also think worst case scenario you get the no vote next week. it's not the end of everything. i think this will be then a lot of negotiation, a lot of discussions back at the table. i think the problem is that europe lost trust and their combative style. if they can come together a little bit more for the greek

people facing banking controls and credit controls at the moment the pain is unreel. the civil unrest if there was a grexit. economically and political it's probably bearable but for the human element is a different matter. unwould one would assume even with a no vote something could be done. >> we talk about them sticking to this hard line with greece to set the proper precedent. do you think they're also sending a message not to take a gamble with greece since you have incurred quite high returns from the investments thus far? >> yeah i'm not so sure on that they want to send a message that you're part of the european union. they're much more looking at the european project and euro et cetera that will survive. i think the message that draghi the ecb with qe is sending to

investors, we'll encourage you to move into riskier assets. even with the contagion of the greek move the monday morning markets down 5%. that's a big move but not the end of the world. it was a contagion. not a panic. i think investors are look around and saying europe is pretty interesting to invest. you low euro. you have massive qe. draghi will run the project through to its course. global portfolios. it gives you a pretty interesting point. >> just a quick final one on brazil. you're a brazilian company based in brazil. how exposed are you to the pain happening in brazil's economy at the moment.

>> let's say minus 2% gdp this year. negative gdp growth next year the economy is facing tough times. you the political uncertainty and you mentioned petrobras which will run and run and run as more information comes out. all of that is a significant drag on the economy. we as a group have to be careful because we announce q-2 results in the not too distant future but volatility is pretty good when you're the leading market maker, the biggest m&a house in brazil. we'll do okay. i also see international investors when we experience this recently. they announce it in brazil especially with 330 to the dollar. so that's going to attract good long-term investment. >> fair enough. that was steve jacobs. ceo of asset management.

so as you can see guys even people invested in greece are still holding out for the best case scenario. we'll have to wait and see what happens. >> thank you for that. i want to cross back out to julia in athens for the latest. do you think the fact that euro zone finance ministers delayed their call after the market closed today is a good or a bad sign. what do you think? >> what we know from yesterday is the greek government presented their latest proposals in terms of reforms and measures from the last minute at that euro zone phone call. they'll need time to have a look at them. >> at this stage not worth looking into it more than that. who knows at this moment if they are ultimately going to try to agree a deal it will be a new memorandum. there's many different pieces that need to come into play here so speculation at this point probably pretty useless on my

part but i wanted to get you another voice here from greece. and parliamentary spokesperson as well. concerns that the banks could run out of money by the end of this week. people might not be able to get cash out. are you concerned about that too? >> i am concerned. i don't know what the situation is but pension funds were not able to pay in full. we have pensioner ins waiting today to get their pensions 120 euros maximum. i do know that we can get 60 euros per day from your atms which is disasterous all in all. i do see a ray of hope if greeks vote yes on sunday this will serve as a reaffirmation that they want to stay in the euro.

>> are people going to vote yes because there's a lot of concern that the no vote is winning. >> people will vote yes. this is a vote about the future of greece and if there's anything good that can come out of this referendum, for the first time the voice of the greek people will be heard clear and loud and i hope that the people at the ministry of finance will understand that it was catastrophic and that we need to make a fresh start and i think that this fresh start in our relationship with europe can be made after sunday. >> can alexis tsipras make a fresh start here? if he gets a yes vote he said he'll re-sign. the creditors can't work with him at this stage. >> the creditors were very clear and i'm not just talking about angela merkel i'm talking about renzi, people who belong to the central european left made it very very clear that the only way for greece to actually stay

in the euro is if they vote yet. >> what i hear is they're angry at austerity and it doesn't seem like this govern suspect attaching a no vote to a potential exit. >> all of us who are campaigning for the yes will be pleasantly surprised sunday night. i have faith in the greek people. we have worked very hard to become an integral part of europe. we're not going to throw this away but mr. tsipras put us in this dilemma. to your point if the yes vote wins mr. tsipras cannot stay in power. he has said to very clearly. if however, the no vote prevails, people need to know what the consequences of a no vote is. they're already seeing the first episodes but the last episodes will be disasterous for the country. >> i want to ask you a quick question about rumors in greetsce that mp's can take more cash out

from what other greeks are limited too. >> that is absolutely not true. the cash point in the parliament still is 60 euros but it's interesting that they were the first to actually go to the cash points right before the capital controls were announced. >> so very quickly they were suggesting that you're fear mongering, the situation of capital controls this talk in the papers of deposit hair cuts. are you fear mongering? >> i spoke in parliament and i warned greeks that on monday the banks would not open. the same people that claimed there was no possibility that banks would be shut. the same people telling the greek people to vote no. who should they believe. >> thank you so much. guys back to you. >> thank you so much. coming up on the show it's the first day in a new job for a number of ceo's in europe and

the u. s. but who has the toughest task on their hands? we discuss after the short break.

>> it's july 1st and the first day on the job for a number of

new ceo's today. let's kick it off with credit suisse. he left the top job on a high. he replaces brady stepping down after 8 years at the helm of credit suisse. expectations were very high. analysts and investors expect him to focus on the bank's capital levels. the stakes are high for former ubs ceo replacing joint heads. the management shake up follows a series of rigging scandals and a weak performance on the share price. the task is now to claw back trust in the german lender. let's talk more about those expectations. at first is the head of european banks and joins us now. what are you expecting from those two ceos? >> morning all. it's interesting.

i think he probably has the easier job in answer to your original question because i think credit suisse is fundamental core business is a very profitable and attractive business and there's a clear problem in terms of levels of capital which he can address in a reasonably quick manner so the strategy there i think is pretty clear and it's pretty clear what he can do. fundamentally no parts of the business are profitable and turning that around into a balance creating investment for shareholders is a much more challenging exercise. >> does he need to abandon certain parts of the business? they tried to continue doing everything and if we look at the results over the last few years the returns have been pretty pathetic. >> he has to go through the business line by line and prune

out the underperformers or habitual underperformers. we have gone through a lot of change at the moment. all the signs are capital requirements are going to go up. so the environment is getting tougher in terms of returns, not easier. and i think with that backdrop he'll have to look closely at any number of areas with the business. i mean they are already being identified as one area to go but i suspect he'll find areas that have really not generated value for shareholders for quite a considerable period. >> u.s. banks have been outperforming on the prospect the expectation of the fed perhaps raising rates in september. which banks in europe do you think will also benefit from that rate hike when and if we do get it? >> yeah i mean t way we would be playing that is through the likes -- the swiss banks through the ubss and credit suisse.

big u.s. businesses out on the private banking side. big exposure to the u.s. dollar and those are natural ways to play that through. some people mentioned hsbc gets picked up as somebody on the margin into a raising rate environment. the history is often the feed through of higher u. s. rates into asian markets is not that positive. so personally i wouldn't necessarily be playing it through that. >> let's move on to greece and the european banks exposure to greece. we know it's dropped quite significantly after the psi back in 2012 but european banks still have some direct or indirect exposure. what if we do see a default? what if we do see a grexit? which banks are going to be effected the most. >> that's one of those questions where every time you ask a bank what their exposure is they assure you it's nothing material and yet we know the total exposure of the sector is

somewhere around 45 billion sitting somewhere. the data would suggest to the german banking sector in particular. it's not always that good so in terms of the actual individual banks banks, i would still stick with it's going to be pretty low. it's probably hsbc. they have about a $3 billion exposure now. it was 6 but they brought it down quite a lot but clearly for a bank the size of hsbc any write off you make in respect is going to be imminently manageable manageable. so the fear is not around the direct loan exposure. it's more the secondary effects. what it does to bond spreads. what it does in terms of contracts where some of the

collateral is sitting in places we thought was safe but isn't and the history of these things is always the unknowns that catch you, not the known ones so to speak. >> just very quickly what's your top european banking stock at the moment? >> well i'm on record of any number of times saying that i'm in love with them and i would be going with them. it's an absolute steal. >> thank you for joining us. much appreciated it. >> okay. >> i too enjoy the nordics but thars that's for a different reason. it's family time for outgoing boeing ceo stepping down from the world of work on a generous $59 million retirement package after a decade at the aircraft manufacturer. who is coming in? coo dennis millenburg is taking over and his aim is to restyle the culture.

meanwhile after 20 years at the top mr. rupert murdoch is passing on the ceo role to his son james murdoch but murdoch senior isn't letting go that easy. he plans to stick around as executive chairman and still holds the final say in decisions. the co-founder of twitter steps in as temporary chief executive replacing dick costello after five years at the helm. he built up the social messaging giant and took it public but struggles to attract new users and compete with the social media giant in this space which is facebook. the big question is can jack dorsey turn things around. >> mark zuckerberg likes running with his dogs and wonders how the brain works. the chat became so popular that facebook suffered technical

glitches after celebrities weighed in on users being forced to use their real names on facebook he said nicknames were okay. on his $1 salary he says he asked enough money and when asked why he came up with poking, he said it seemed like a good idea at the time. >> we want to hear from you on this. if you could ask any of the incoming ceo's a question what would it be? if you want to join in get in touch with us. worldwide@cnbc.com. tweet us at cnbcwex. i have to say i'm very impressed by fielding the questions from people and not just sticking to the earnings call every quarter. >> we put the twitter question out there and sc has written in he wants to know how much higher is your salary in comparison to the company average and how do you justify that difference. i think that is a very valid question.

>> it is. it's one of the outstanding issue with bonus structure pay. bonuses are good but that difference in pay. i'd like to talk to james murdoch about his plans going forward. really interesting the idea taking over from your father how is he going to deal with that but clearly he proved himself at sky but that industry is changing so fast and sky itself has issues about who it may or may not partnership and it's own issues in the state so he would be the one i wanted to get in a room with. >> on fox another twitter viewer writes any would ask 24th century fox new ceo what is your plan to get all content digital and on the web? it's a tough transition. >> the bigger question guys is for twitter interim ceo jack dorsey. he's the founder but does he actually want the job in some people say he will be the one that will be chosen as the new ceo going forward. so it will be interesting to see

what happens what happens as interim ceo of the company. he clearly has a lot of value. what will he be like as interim ceo. >> maybe he should do a reaction on twitter like on facebook. see what the users want. >> how much impact can you really make in three or four months because a lot of people are expecting an announcement to come in the fall. so for him it's really just a summer job. >> just a sitting duck. he's just holding the front down until they finally find a viable candidate to take over. >> no one really works that hard in the summer anyway. >> that's you wilfred. >> actually i will be but aside from us i'm sure he has thooes a couple of holidays planned in. >> a lot of challenges. he'll be work pretty hard this summer. continue to get your tweets into us. let us know what questions you would have for key executives ushering in in the month of

july. still to come on the show thawing relations, president obama gets set to announce a historic deal with cuba. the detailers later in the show. what can we expect on this wednesday morning following european stocks moving up broadly higher in today's trade. could be set up for a rally. dow up 98 points in premarket trade. don't go away. more on today's price action coming up after the short break.

>> day one of q-3 and u.s. futures are pointing to a stronger open after the dow posted a first half loss for the first time since 2010. >> car makers extend their good run with sales figures for june expected to top 17 million. >> euro zone finance ministers on hold to meet again on the on going greece situation. this amid reports that he has hinted the referendum could be cancelled if a deal is reached.

>> and firming up relations with cuba. president obama is set to announce the u.s. and cuba have set a deal to open up embassies in washington and havana. >> coming up we'll be live to hear how they're factoring in the greek crisis. and will machines win and what is the future of digital news? just some of the questions posed to mark zuckerberg. find out how he answered. can consolation boost investors spirits when it reports q-1 earnings. we pour over the details. >> and welcome to the show. you're watching worldwide exchange. it's been a volatile week when it comes to equity trade.

futures indicating a higher open. the dow up 129 points. stocks shrugging off that move because it was expected. the dow up 139 points in premarket trade. we could be kicking off the month of july in the green in terms of what premarket trade is suggesting and similar story in europe. the xetra dax up 160 points. this could be interpreted in a couple of different ways. perhaps investors taking advantage of the sell off earlier this week and using this as a buying opportunity or maybe it means investors are getting more hopeful of a deal coming together between greece and international creditors before the referendum on july 5th. that's the key question. will we see some type of progress. >> kicking off july in style. we certainly have done in

european trade. i can't believe it's going to last that long though seema. let's see what the bond market is telling us as well. we looked at german ten year yield has fallen to about 0.8%. it's risen a little bit today. as seema was saying there's a bit of positivity out in the marketplace. like likewise a little bit of saving of the safe haven bonds. yields tick up 0.8 we're seeing there on germany and 2.4 on the u.s. yield where as opposite happening on the out side so a little bit of buying back like these. a little bit of yield compression there. as we told you all week the move in the euro has been a little bit confusing. today it is flat. 1.11 1.114 in terms of the euro dollar. we're looking at the yen down 0.3, 12286.

sterling is off a little bit. 1565 today. a quick look at commodities as well. no real move in the gold price despite all the uncertainty at the moment. it's remained at just below 1200 for sometime. oil price is soft today. 58.8. brent 63.1. carolyn. >> and watching twitter and actually peter who is the brussels main correspondent just tweeted out got my hands on a new tsipras letter conceding on almost all points. that means he will accept all of his bailout creditors conditions that were on the table this weekend with only a hand full of minor changes. i'm quoting here what peter has written and he is usually pretty well informed. i want to get your instant reaction to that. >> yeah, very interesting. if that's the case what can be achieved here and of course does this mean the prime minister is going to try to call off the

referendum having said look this is about your democratic rights. i'm taking this back to the people or does he let it go ahead and do a u-turn and push the yes vote. it's interesting this is the case but we knew things were changing in the background in particular but this is going to take time as there's many factors here we don't know ultimately and he'd have to sign another memorandum of understanding. so many question marks even if there is a letter conceding some kind of ground here. i am joined by the head of the yes campaign for this referendum. sir, there's a suggestion that the prime minister may have conceded ground on all points that the creditors were demanding. we know the negotiations are going on in brussels. do you believe that? that the prime minister will

have conceded on all points basically that were being demanded? >> i think that after five months of negotiations i'm not very sure about the intentions of our government. i'm not very sure that they really want to negotiate. if you want to negotiate, you have to understand it's the euro group and government. they have to make compromises. >> i think the creditors would argue at this point too and have done that even if the prime minister decided to push for a yes at this referendum they can't trust him to implemented anything he agrees on. would you agree with that too? >> yes, the thing is the greek

government lost it's credit with the europeans. it is another thing that the europeans, i really mean it that europe is part of it they don't understand. they don't understand what's happening in greece. the real point is what's the question on the referendum? there's no memorandum. so what do it for so my idea and my proposition, i said this loudly and clearly and publicly is as soon as we don't have a referendum that we have two basic questions. either the government says that yes or no for stay in europe or don stay in europe. >> be honest about the question basically? >> and the other thing is that

there's no real question. >> should this referendum go ahead or not? should tsipras concede ground and call off the referendum? >> this would be a very wise idea and brave idea too. >> can he survive that? and then he survived. >> he was elected with the main point that we're going to negotiate within euro in the european union. so as soon as we didn't come to an agreement, we start all over again. yes, now today it's another thing. so he must be brave enough to say that okay we'll stay in europe because the referendum is very -- what will happen if we have 52 and 48. >> just very quickly yes or no. if this referendum goes ahead,

can the yes vote win in your view? >> i think yes. >> sir thank you for that. the mayor talking to us there. we don't know whether he has given ground. whether or not the referendum will still go ahead but you heard it from there. he believes ultimately the yes will win. >> but at least on those records we've seen huge market moves in the last five or ten minutes since the tweets have come out. take a look at the euro stoxx 50 jumping now. higher by 2.2% on the day. on the chart there. you saw a big spike in the euro dollar. now flat on the day and this is as peter spiegel tweeted that alexis tsipras will accept all the conditions on the table over the weekend with only very minor changes. >> let's have a look at bonds as well because the so-called safe haven of germany has seen yields tick up.

the safe haven bond being sold off the back of the more positive news. 0.815%. meanwhile, movements in the opposite direction for the others. yield compression 2.207-on-the spanish ten year. >> we've seen movement in the currency market. take a look at your screen. gaining ground now against the u.s. dollar. a sharp move in the last ten minutes as karen eluded too. greek prime minister alexis tsipras request for a new two year loan to pay debts that amount to 30 billion euros. that will be the topic of discussion. the euro holding on to 11143 against the dollar. >> now james bullard played down worries over contagion from the events in greece. speaking at a tech event he said athens economic problems are unlikely to effect the u.s. adding what is happening there wouldn't change the timing of a

rate hike. depending on data a september rate rise was still very much in play. >> let's get you a run down of what to watch this trading day in the u.s. the monthly employment report is out at 8:15 a.m. eastern. expected to show private sector hiring was stronger in june than may. at 10:00 a.m. we get the june manufacturing index which will show that factory output increased last month as well as in may. macon instruction spending will be something to watch as well. con constellation grands and general mills before the opening bell. >> june is expected to be another strong month for the industry. sales are forecast in the annual range of 17.2 to 17.4 million vehicles thanks to continued strong demand for pick up trucks and suvs. that would make june the 3rd month out of the last four and make the first half of the year the best for auto sales since

2002. >> still coming up on the show will there be a white night at nike. phil night steps down as chairman but who will fill his shoes? that's ahead.

>> markets turn higher on news that alexis tsipras conceded on almost all points. june sales are expected to top 17 million and beverage giant constellation brands reports q-1 earnings with all eyes on the growth of beer sales. >> a mixed bag of data out of china. factory activity remained in contraction in june but the reading was slightly stronger than may. the official pmi remained unchanged. better news in the services sector with signs of growth. let's get out to sri who is live in singapore with the latest on how markets close today. shanghai closing down by around 4%. >> absolutely. volatility is part of the new normal. just my two cents worth on the pmi numbers.

yes, it does suggest the degree of stabilization but what worried me and a lot of economists is the fact that the employment rate is edging up on the factory floor. job cuts are at the highest level since around early 2009. that has social stability implications and you can bet that the pboc will try to support the economy and the labor market and the stock market given the wealth effect that's being created in equities equities. it tried to do so over the weekend to little avail. there were a lot of measures to try to calm the market to no avail. deleveraging is continuing among investors. the market down by more than 5%. elsewhere, the markets seem to be taking greece in their stride. i wonder if it's going to change the picture tomorrow as well for global capital markets.

back to you now in london. >> thank you for that sri. let's show you the european markets that rallied substantially on those tweets coming from speetpeter spiegel saying alexis tsipras macon seed on all points tabled over the weekend with only very minor changes. the dax building on to its previous gains up by more than 2%. the cac 40 higher by 2.5. >> if he has. if he is conceded on four points politically it's total embarrassment. what's he doing? he's now realized how terrible calling this referendum was but it now looks like if the vote goes against him he'll have to stand down but he'll have to stand down slowly either way.

>> if he caves in i know that the creditors have been some what flexible and they have tried to ease the pain for the greeks but it's still going to be really harsh on many of the greeks so i agree with you. i think either way he'll have to leave. >> he has overpromised and underdelivered. if we don't reach a deal noah head of the referendum coming up on july 5th if we get that yes vote, whether it's a yes or no vote my question is what happens to his position going forward? >> i think he goes interesting now if it would go ahead if they reach a deal. referendums anyway in greece are politically binding. so the antiausterity government agrees ahead of a referendum it would be scrapped. >> but markets reacting strongly. >> in the meantime erratic moves

in the markets. equities bonds, not as much in the commodity complex as much. we have seen oil prices come off the lows in the midweek. but something to watch as we continue. coming up on worldwide exchange we'll be live at the world's largest fund managers conference in monaco to hear how they are factoring in the greek crisis. that's coming up next.

>> the greek crisis is dominating talks on the sidelines of the largest fund manager event of the world. however a number of attendees shrugged off concerns about the markets. let's get to nancy in monaco. >> thanks carolyn. that's right. the mood has changed here just since we arrived a few days ago and people are starting to wondering whether or not this is a buying opportunity for the industry but there's a sense of frustration that greece and the other global risk such as a fed rate hike are distracted from the other agenda which is looking at other innovations. one guest joins me that's a leader in that discussion. tom brown joins us. thank you for being here. i want to talk first of all, you said that this industry needs to

adopt formula one tactics to really survive. can you explain that? >> clearly the whole situation with greece is another example of geo political risk and risk that the investment management industry has a long-term industry has to deal with. what we're seeing though is these risks seem to happen more often and formula one technology around how that industry has developed capability can help manage risk better. >> part of that data is giving way to what we call the passive funds which have grown in popularity over the past few years but is an argument made that unintended consequences of a fed rate hike does not suffice. >> that's where active managers really earn their money. the concept is in between that and i think it's the way of the future. >> yet we continue to see

studies showing that they're out performing as well. is there a general pressure on this industry in order to stay competitive? >> there's pressure on the industry. there's pressure on the active part of the industry but to be clear i think passive and active both have an important role to play for investors. i think the passive debate forces the active managers to be sharper than what their proposition is and sharper on the value they are delivering to their investors. >> when we talk about these reforms for the industry as a whole some technology players looking to get in the game. we talked about google having a role in financial services. do you think google could become a key player in this industry? >> the potential for disruption from big companies is huge in this industry and i think it's been a real wake up call. it could be google or another company. i think the industry is ripe for some kind of disruption. >> all right. well this forum could look very different in a few years if we have the likes of google and

alibaba executives running around, that's for sure. back to you now. >> hanukkah for that. guys i have to say the weather there looked delightful. >> it did. >> but one of the few occasions where we'll have even better weather in london today. it's set to be the hottest day in london for up to a decade. >> amazing. i would caution wear some sun block. we know what happened when you were in switzerland. got a little red there. >> i'm usually really good at putting sun cream on. >> but it's not going to just be hot in london today but also across the continueent. in paris 40 degrees outside and madrid 40 degrees and berlin 27 34 rome. >> we can't unbathe there this afternoon. we care about london. >> what about the viewers? >> here's the advice we want from our viewers.

what's the best thing to do? do you go to a roof top for drinks? do you layout in the sun? do you bike? >> no it's too hot. >> it's like pouring with sweat. so probably not too much. >> that's what most of our viewers are doing. they're walking around in suits going from meeting to meeting and maybe they won't even see the sun outside. by the time they exit the office later on today at 7 period:00 or 8:00 it will be cooler. >> and also going on wimbledon plays into the hands of the big servers, the volleyers. you're the tennis experts. who is playing today? >> that i don't know. >> but he won his first round. >> novak. he's such a character. but i'm all eyes on the fed. i'm not talking about janet yellen but mr. federer to see if he can win again. >> who is your top pick? >> my top pick is still

djokovic. >> seema. >> federer all the way. >> do you think he can do it again? >> i think so. >> i have to go for a good old brit. i would like murray if not federer. >> all right. on to the finals for the u.s. at the women's world cup. they beat the top ranked german team 2-0 in the semifinals tuesday night. carly lloyd connecting on a penalty kick in the second half followed by another goal by caylee o'hara in the final minutes. the final is sunday in vancouver where the u.s. will face either england or japan. the u.s. women haven't won the world cup since beating china in 1999. >> america. >> come on england. >> america. >> i want england to get to the final for normal reasons but it would be great if it was seema versus wilf in the world cup final. >> you'd be going down though. >> we're going to win this. our men's football team is shocking but the women are showing them how it's done. into the semifly ball massive agreement and hopefully we can join the u.s. in the finals

sunday. come on england. >> still to come here on worldwide exchange raising the bar, can constellation brands boost investor spirits. >> and a quick look at u.s. futures, the s&p 500 higher by 20 points. the dow jones set to add 180 points after a slightly positive yesterday. the nasdaq set to add 50 points. we'll be back in two.

is athens about to raise the white flag? new reports suggest the greek prime minister surrendered to almost all the creditors demands sending the euro and european shares sharply higher. >> u.s. equities set to follow that rally with futures indicating a triple digit move higher for the dow. all eyes on the auto sector as auto makers look to extend their sales run. >> president obama looks set to announce a deal to cuba to reopen embassies in washington and havana. >> good-bye to dick costello. hello to jack dorsey. the company faces investor pressure to compete with gook.

>> a new bailout program for greece is do able before the july 20th program which is when the payment for the ecb is due. how are markets in europe responding? we are higher at session highs. if you take a look at the xetra dax up by 2.5%. we have seen a major sell off earlier this day. so perhaps yes a rebound but again not at the highest levels we have seen by any means. higher by around 265 points. ftse 100 up by triple digits. so again investors closely

watching the greek situation and this report suggesting that greece will accept creditor's terms. what is the greek equity index doing. it's up 2% in today's trade. draw your aengs to what's happening in the currency market because the big story has been the resil jens of the euro despite the heightened degree of uncertainty around the greek debt situation. the currency market also responding to this report. it's up in today's trade basically hugging the flat line but we'll keep an eye on the euro dollar trade holding on to 111. >> let's bring you flashes coming from mark carney in a scheduled release and report he said that the u.k.'s exposure to the euro area is considerable but greek banks is small. contagion of greek crisis to other euro zone countries much lower than in 2012 and saying they do have contingency plans in place to deal with the greek

crisis however risks may not be reflected in prices: he is saying risk lower than 2012 however we are seeing quite a significant sell off of sterling down 0.3% big move in the last few minutes. >> i want to come back to the letter that sparked a market rally over the last half hours. market jumping on hopes for a deal and according to the letter leaked by peter spiegel, it says alexis tsipras will be accepting most of those put forward over the weekend. only minor changs and drilling down into the letter athens will

have one change. and tsipras saying the changes to the retirement age will be 67 by 2022. they will begin in act rather than -- october rather than immediately. they're not that far apart right now. >> reaching a deal of some sort. the tone is changing. this morning the french finance minister saying we could try to reach a deal with greece before the sunday referendum. if we do find that the two sides are able to come to a deal what happeneds? do the greek citizens still vote yes or no on sunday? >> according to recent polls, the greeks would vote yes for a deal but once you attach the conditionality to it austerity, that would be more split.

they might vote no. they clearly want a deal but they don't want the terms. >> they want to stay in the euro zone but they don't appreciate the technicalities of the bailout deal is the consensus so far. >> from our perspective we have been very critical of mr. tsipras saying his flip flopping is not the right way to two about things but people still quite like him in greece and they might vote for what people suggests he should vote for. having said that another factor only 36% of the electorate voted for him this year. not 51. which is how things change when you move to a referendum. >> but still, 36%. that was a fairly big majority. >> but that was a very very big margin he had and if you take a look at the polls now they're steady. people would still vote for

alexis tsipras if elections were to be held today and that's quite striking. >> absolutely. as we were showing you xetra dax at session highs, 248 points. we'll keep an eye on markets and how they respond when it comes to greece. but let's look at the other top stories at this hour. puerto rico's struggling power authority is close to a deal with creditors to avoid a possible default on a roughly $400 million bond payment due today. they have about 9 billion in debt and in talks for months on a restructuring plan. it will be partly financed by the insurers that backed the bonds: puerto rico will make a payment today on its general obligation debt and made a final payment in bank loans. from the people i speak to in the u.s. and jim cramer was seeing this yesterday, puerto rico and this debt issue a

bigger problem for global markets than greece. all the funds out there have exposure to puerto rico debts. >> maybe it's u.s. based funds and economy. >> u.s. exactly. u.s. funds and u.s. investors. >> well i still think neither are as big of an issue as china is. auto makers report their sales numbers today and june is expected to be another strong month for the industry. sales in 17.2 to 17.4 vehicles thanks to strong demand for trucks and suvs. that would make june the their month out of the last four where they top 17 million and make the first half of the year the best since 2002. >> still coming up on the show a summer of starters. we check in on a number of new ceos taking the helm this week. that's in two minutes.

>> president obama is expected to announce that the united states and cuba is formally opening embassies in each others country for the first time in half a century.

>> good morning, this comes six months after the president said that they wanted to start that process of normalizing relations. they took cuba off the list of states that sponsored terror and now this is the next step and it's a big step. we haven't had an embassy down there in more than 50 years. what we have is called the u.s. intrasection but it doesn't have the power or privileges that an embassy would. a lot of people in washington don't think it's a good idea. critics hearsay the u.s. has not much to gain from this. congress could try to block the money for opening that embassy. they could slow down the process of confirming an ambassador. secretary of state john kerry himself will travel to havana probably sometime this month to raise the flag and open that embassy. it would open opportunities for businesses and tourism.

travel is very much restricted there and we still have a trade embargo that only congress can left. >> tracy, thank you for that. meantime i want to show you what the markets are doing in europe and we're close to session highs on the back of the reports that greece would be making major concessions to the demands. up by 1.8. the cac 40 up by 2.5 and the dax also rallying. the big question is will we still see a referendum even if we get a deal? >> it's interesting how markets are shrugging off the fact that greece did miss it's imf payment, the loan repayment to the imf yesterday. saw market participants say the bigger deadline to look to is july 20th when the ecb payment is due. but in the near term we're all watching the july 5th referendum if it will still happen. there are reports that a potential deal may be coming together. >> indeed, we're going to move

on and talk about beer. >> great transition. >> i'm really excited about this one. we are going to go all out to talk about the thing we have in our hand at the same time. >> who made that rule? >> the regulators or something. so warm today we could be sipping a cold beer. >> but that might not make us as productive as anchors. >> 10:45 daily beer should be allowed. we should make sure we get to the point. constellation brands reports earnings before the bell and investors will be looking to see how the growth has impacted the company's bottom line. analysts are expecting $1.23 a share on earnings. shares are up nearly 20% and the stock reached a new all time high last week. joining us is an analyst to

discuss this further. thank you so much let's kick off with the beer portfolio doing incredibly well. what's driving that? >> you're right in your comment about corona. it's been their story and particularly of late as the company repackaged their can offering which has driven an acceleration in the top line over the last few points highers. to be sure though have played a big part in that too. >> i also want to ask you, we've of course seen a massive growth in the beer segment but i have been speaking to millennials that there is a clear shift to whiskeys and rums. millennials are driving the demand for whiskey products. that has to be bad news for the beer business. >> you're right.

constellation is in a you peek spot where they're shifting into spirits. but not every beer segment is at a disadvantage. imports and craft beers are showing some signs of resilience so it's the domestic american premium light beer coming under the most pressure. >> do you buy or sell the stock on the back of a good earnings report. >> we have a neutral rating. the top line has been impressive. the thing keeping us on the sidelines right now is valuation. >> thank you so much for joining us. also later today on cnbc constellation brand ceo rob sands will be on closing bell for an interview after the company posts earnings. one not to miss. now let's bring you the latest on the greece story. earlier we had a little bit of a rally after or thes from an ft

journalist that he had a letter in his hand suggesting that mr. tsipras was going to save to demands. now a report from reuters saying the tsipras letter contains elements that ministers will find hard to accept. so this seems to back up the existence of this letter suggesting that tsipras is about to seed to greece's creditors on most demands and many will find it hard to stomach. >> this after another official says a new bailout program for greece threeeoretically is doable. a lot of folks commenting on what we can expect ahead of july 5th if we have the referendum in place. >> before we go to break, these are your headlines. markets turn higher on reports that the greek prime minister conceded on almost all points to

creditors. auto makers look to keep their foot on the pedal as june sales are expected to top 17 million. disney named christine mccarthy as the new cfo. the first woman to hold that position.

>> the euro turned higher amid reports of a concession from alexis tsipras in almost all points with creditors. a letter from tsipras outlines a u-turn on previous demands. julia, if that is true what do you think caused that u-turn? >> look i want to wait and see as this news filters out. remember there were issues about debt in there too. if he conceded on all points as far as the future debt

negotiations that would be a huge set back. we know that the stitch asian here is very tense in terms of the liquidity in the system and concerns about cash. you only have to look at the papers this morning, concerns about the risk of deposit hair cuts. there's a great deal of concern about what the impact of capital controls is going to be. yesterday there was tension in the government too. so i want to take a step back and ask the question how is mr. tsipras going to sell this if it is a close ka pitchcapitulation. how can he come back to all the things we heard over the last week? the concerns about the credibility of this government to implemented any deal at this stage? it's going to be a bunch of finance ministers sitting around that table going convince us. convince us that now that you're going to sign this convince us

that you're going to follow through. there's a number of elements here i want to see further details on before i can get too excited about the prospect of finding some kind of deal. maybe it's the case and maybe he has inseresincerely backed down bit i want to cautious that this is the hallmoment. it will be difficult to sell domestically. he brought the country to this point over the last five months so a difficult cell to reverse at this stage. >> julia, thank you for that. meantime i'm just looking at breaking news the greek prime minister in a letter is asking to keep tax breaks for the islands changes to the pension reform plan. so that would back up the report.

meantime the german finance minister said nothing has changed apart from fact that we had no teal at midnight. >> let's talk about market reaction with the global head of fx strategies. pleasure to have you on the show this morning and of course the big question is just taking a step back is how should we interpret the strength of the euro? some would say investors don't see greece leaving the euro zone. others say greece will vote yes on the july 5th referendum this sunday. >> well i think on sunday we expected a knee jerk reaction lower but you have to be very cautious because the greek situation is obviously something that captures headlines every single day but the contagion

effect we saw in 2011 and 2012 where there was dramatic spill overs to all markets in the euro zone that effect is much much smaller now. we saw that on monday. we opened weak and then during the day on monday we recovered and the euro ended the day higher which was a shock to a lot of people and that means that people are getting increasingly reluctant to trade the euro lower on the greek headlines. it's getting less and less sensitive to it and more and more investors are saying what's the long-term situation. what does it mean in the longer term and what's the global picture picture. >> that played out in the bond market. they're not toward any serious contagion. how important is the ecb bond buying program in terms of

keeping those yields limited? or is it fundamentally because there is no risk of contagion this time? >> yeah i got a lot of questions over the weekend. is the ecb going to step up the bond purchases in the short-term to make sure there's no spike in yield. in the end we only really got that statement. on sunday they were ready to use all their tools to make sure that there's not any monetary tightening and it wasn't necessary to do anything more concrete. so we have the ecb backed stuff in place. that is on going. that's going to go on for more than a year from now and that creates anchoring on where yields can go but i don'ty it means the ecb is going to try to micromanage it and we're within

the range of spreads. we haven't really broken out in terms of the range of spreads. italy versus germany and from that perspective i don't think the ecb is going to panic about it quite yet. >> we'll leave it there. thank you for joining us this morning. good day to have you on given the fast moving developments and greece. >> i want to get back to comments made by the german finance minister. he says the second letter from mr. tsipras has achieved no clarity. no clarity from that second letter. we're in a completely new situation with greece. we are always ready to talk and it says that greece has to make clear what it actually wants but there's no basis to have serious negotiations with greece with the the moment. >> but overall, markets taking this well. stoxx 600 up 1.6%. thanks for joining us.

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big breaking news global stocks are soaring one day after greece stiffs the imf. the country's finance minister appears to be backing down. reportedly now ready to accept creditor's demands for a bailout with a couple of lesser conditions. a losing hand in macau. gambling revenue at a near five year low. a live report from china on what this could tell us about the overall economy there. a big win for u.s. women's soccer. the team defeating top ranked germany now headed to the second straight world cup final. hopefully a better out come this time around. it's wednesday july 1st 2015 and squawk box begins right now. ♪

good morning, everyone. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross s is orkin. welcome to the second half of 2015. the story this morning all about greece. the big headline appears to be moving the markets at this point. a report that says that the greek prime minister was prepared to accept creditor's demand for bailout with only a few minor changes. now of course the devil is in the details but this is a big about face. we'll talk more about it with michelle in just a moment. but take a look at the stock reaction to this. huge rally on this news. at this point it looks like the u.s. futures are up by 150 points at this